CEO of Private Health Insurance Company Fired After Admitting to Hiring Private Investigators to Spy on Customers
AUSTIN — The chief executive of a private health insurance company who admitted in a legislative hearing Wednesday to hiring private investigators to spy on customers has been fired.
The dismissal of Superior HealthPlan CEO Mark Sanders follows his testimony Wednesday to the Texas House Delivery of Government Efficiency Committee in a hearing on Medicaid procurement, during which he acknowledged hiring private investigators to get background information on lawmakers and others.
“The conduct highlighted yesterday during the course of the Texas House Committee hearing is not reflective of our values nor is it a practice Centene’s current leadership condones,” Centene, Superior’s parent company, said in a statement to The Dallas Morning News. “To this end, Mark Sanders is no longer with our organization.”
Sanders’ termination comes hours after Texas Attorney General Ken Paxton announced he was investigating the company over the allegations aired inside the Capitol on Wednesday.
Investigation and Background
“The allegations concerning Superior’s actions, such as actions that were characterized as potentially blackmailing lawmakers to secure state contracts and surveilling private citizens to avoid paying legitimate claims, are deeply troubling,” Paxton said in a statement. “I will get to the bottom of this, uncover any illegal activity, and hold bad actors responsible.”
At the center of the probe is a series of private investigations, starting in 2017 and allegedly ordered by Sanders, who had just taken the helm as chief executive officer of Superior. The health care firm was facing lawsuits at the time over declining coverage.
Sanders, who headed one of the state’s biggest providers of health insurance for children on Medicaid, told lawmakers under questioning Wednesday that investigators had done “routine” background checks into several state representatives, senators, health care providers, patients and their families and a journalist several years ago.
The company has abandoned that practice, Sanders told the committee during a tense hearing he acknowledged was “rough” for him.
Response from Centene
“We’ve done what I would call general research,” Sanders said. “Anything that’s publicly available.”
Centene said it regretted the effect Sanders’ conduct has had on the company’s partners.
“Superior’s credibility rests on being a trusted partner to our members, government stakeholders and providers,” Centene said. “While we took the necessary steps to ensure this conduct was stopped a number of years ago, yesterday’s hearing made clear we failed to address its full impact.”
“We are committed to building transparent and trusted relationships with our government partners and remain focused on our mission to improve the health and well-being of the Texas communities we serve,” the statement added.
Investigations and Lawsuits
The subjects of those investigations included Texas Land Commissioner Dawn Buckingham, then a state senator, and Southlake Republican state Rep. Giovanni Capriglione, according to documents obtained by The Dallas Morning News.
“You’ve hired private investigators to look at … people who have filed claims and felt that they deserved those claims but that you felt that they didn’t,” Capriglione, chairman of the committee, said at Wednesday’s hearing.
“You were doing that for what purpose?” he asked. “Why would you go and run a background check, hire a private investigator to follow, to dig into the records of people who are your customers?”
In an interview Thursday, Capriglione said that, while it was good Sanders is no longer with the company, Paxton’s investigation should proceed.
Legislative Response
“When this happens, it’s a culture within the company,” he said. “This company is likely to have known about his actions before yesterday, and I think that has to be investigated as well.”
House bills have been filed to prevent this issue from happening again, Capriglione said.
“We have legislation that will make sure that these government contracts have even more transparency and accountability, that we prevent anybody who uses these funds to go after private citizens, to go after state employees or anyone else,” he said. “If any company does something like this again, they will never get a government contract again.”
Conclusion
The firing of Mark Sanders and the investigation into Superior HealthPlan’s actions are significant steps towards addressing the issue of private health insurance companies spying on customers. It is essential for companies to prioritize transparency and trust in their relationships with government partners and customers.
The legislative response, including the filing of House bills to prevent similar issues in the future, demonstrates a commitment to protecting the rights and privacy of citizens. As the investigation continues, it is crucial for all parties involved to prioritize accountability and transparency.
FAQs
Q: Why was Mark Sanders fired?
A: Mark Sanders was fired after admitting to hiring private investigators to spy on customers, including lawmakers and their families.
Q: What is the Texas Attorney General’s office investigating?
A: The Texas Attorney General’s office is investigating Superior HealthPlan’s actions, including the hiring of private investigators to spy on customers and potentially blackmailing lawmakers to secure state contracts.
Q: What legislative response has been taken to address this issue?
A: House bills have been filed to prevent similar issues in the future, including increasing transparency and accountability in government contracts and preventing companies from using funds to spy on private citizens or state employees.
